LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Default in regularization of additional director

Shiva Arunachalam (Student CS) (92 Points)

23 July 2014

Dear Sirs/Madam

A Person was appointed as an additional director in Company X in 2008, he was not regularized in that year ensuing AGM and till date he has not been regularized. But such additional director has signed in all statements of Company post 2008. What is the effect as of now under the Act and what is to be done !!! Kindly advise.

Thanks & Regards

Shiva Arunachalam

Reply
Follow
Share

1 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 23 July 2014

He has automatically vacated his office as additional director on the date of AGM of 2008. Still if he has signed documents and acting as a director, necessary penal provisions will get attracted. Now for the past period there is no way to regularise the things. You will have to face the penal consequences. For future you may decide to appoint him again as a director in current date.